Revfin, a digital lending platform, recently concluded its Series B funding, securing $14 million from prominent investors, further solidifying its commitment to sustainable mobility and advancing the electric vehicle financing landscape.
The funding round, led by Omidyar Network with a $5 million (Rs 42 crore) investment, also saw participation from the Asian Development Bank, Companion Capital, and existing investors Green Frontiers Capital and LC Nueva.
Sameer Aggarwal, founder and CEO of Revfin, said, “This funding will empower us to enhance the EV ecosystem further and contribute to the growth of all types of electric vehicles in India. Our unwavering commitment to revolutionize digital lending remains strong, and we look forward to the opportunities ahead.”
Accelerating Focus on Electric Vehicles
This capital injection brings Revfin’s total raised funds to INR 625 crore and positions the company to accelerate its commitment to the electric vehicle (EV) ecosystem. The funding will specifically target financing for electric two- and three-wheelers (e2Ws and e3Ws) while supporting various components of the EV landscape, including charging stations and batteries.
Omidyar Network’s investment of $5 million leads the Series B round, with additional contributions from key players such as the Asian Development Bank, Companion Revfin Limited, and LC Nueva. Angel investors, including Dhiiraj Jain (Redcliffe Labs) and others, have also played a crucial role in supporting Revfin’s journey.
The board at Revfin has approved a special resolution to allot 9,607 Series B Compulsorily Convertible Preference Shares (CCPS) at an issue price of INR 96,064 each, raising INR 92.3 crore or $11 million. Omidyar Network holds a 12.33 percent stake post-allotment, with LC Nueva, Incred, Asian Development Bank, and Companion Revfin Limited owning 7.10 percent, 6.16 percent, and 5.68 percent, respectively.
Valuation and Expansion Plans
According to estimates, Revfin is valued at around INR 324 crore ($40 million). The company, founded in 2018, provides loans for electric two- and three-wheelers, L5 category vehicles, and small fleets through original equipment manufacturers (OEMs).
Having closed a $4 million pre-Series A round in October 2021 and a $10 million Series A round in the following year, Revfin has set its sights on expansion, aiming to raise INR 500 crore ($60 million) in the next 12 months.
Revfin’s unique approach involves lending to individuals in smaller cities through its non-banking financial company (NBFC) and third-party financiers. The platform has invested in over 21,800 electric three-wheelers and envisions financing 2 million electric vehicles in the next five years.
Financial Snapshot and Future Outlook
Despite its notable contributions to the EV financing landscape, Revfin’s financial numbers are yet to reach a significant threshold. In the previous fiscal year, its revenue from operations surged 2.7 times to INR 6.6 crore, while losses stood at INR 11.32 in FY23.
With the infusion of $14 million in Series B funding, Revfin aims to advance sustainable mobility and fortify the electric vehicle ecosystem. As the company continues to expand its reach and offerings, it remains a key player in driving the adoption of electric vehicles globally.
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